Cullen unfazed by new inquiry

By GREG ANSLEY in Sydney

Finance Minister Dr Michael Cullen says New Zealand has little to fear from a new investigation by Australia's corporate watchdog of Air New Zealand's actions before the first collapse of Ansett Airlines.

"We do not anticipate that any legal action could possibly succeed," he said in Sydney yesterday.

The investigation by the Australian Securities and Investment Commission (Asic) was announced following the decision of the Tesna consortium to dump its rescue plan, leading to the final grounding of Australia's second-largest airline this week.

A special task force led by enforcement director Jamie Orchard will report within three months on whether Asic should sue Air NZ on behalf of creditors for failing to fully disclose Ansett's financial problems before its collapse six months ago.

Although Prime Minister John Howard and other Government officials had previously publicly buried transtasman rancour over the airline's collapse, renewed anger erupted when Ansett's last flight touched down to live and emotional coverage on national television.

Dr Cullen, in Sydney to meet business leaders after discussions with Australian Treasurer Peter Costello in Melbourne on Wednesday, said he had been a little surprised at the Asic announcement.

"Air NZ made a full and final settlement of its obligations," he said.

"That final settlement was agreed to by the major creditors and approved by an Australian court.

"Those creditors included the trade unions."

Dr Cullen said a previous Asic inquiry had concluded that Ansett was not trading while insolvent and New Zealand's primary regulator, the Stock Exchange's market surveillance panel, had cleared the Air NZ board at the time of any accusations in regard to disclosure.

"We shall watch the Asic inquiry unfold but I am not deeply concerned about it," he said.

Dr Cullen was unimpressed by Asic's statement that it had taken note of the earlier finding yet still wanted to proceed.

"We'll just have to have some faith in the processes of Asic and hope we come out with a result that is consistent with our interests."

Dr Cullen also said it was time to forget recriminations and move on.

"There is no point in going back over what went wrong over a period of time.

"I think on both sides of the Tasman we need to get over the blame mentality in this respect and get on with the future."

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